Final answer:
The TILA/RESPA disclosure rules, also known as TRID, became effective on December 28, 2015, with the intention of enhancing consumer protection by integrating loan disclosures.
Step-by-step explanation:
The TILA/RESPA disclosure rules became effective on December 28, 2015. These rules are part of a broader legislative framework that aims to ensure transparency and accountability from financial institutions. In the United States during the 1990s, laws were established that mandated bank regulators to publicly share their findings and take prompt action upon identifying issues. Despite these regulations, the 2008-2009 recession revealed significant oversight failures as regulators failed to preemptively address the looming financial instability of banks, leading to substantial losses.
The TILA/RESPA Integrated Disclosure rule, referred to as TRID, was subsequently enacted to further protect consumers by integrating and clarifying loan disclosures. Although the 2008 disclosure standards remained effective in some areas after 2015, there was a transition towards the new standards set by the 2015 final rule.